A popular analyst has his eye on smart contract platform Avalanche (AVAX) and says that the Ethereum rival is looking ripe for a breakout.
The pseudonymous analyst known as Pentoshi says that despite keeping his distance from altcoins for some time now, Avalanche may be showing all the right signs for a new bull run.
“Been a long time since I bought an alt but seeing as the AVAX summit is next week, [I] have no problem buying this area of support.
Playing same levels as last time that worked out beautifully.”
Pentoshi is also taking notice of comments from Terra founder Do Kwon, who hinted at some big announcements regarding the algorithmic stablecoin platform and Avalanche coming up at a conference next week.
The closely followed analyst also says traders shouldn’t dismiss what Kwon says, nor the overall bullish catalysts building up for Avalanche, including the negative funding rates that have shown up as AVAX gains strength.
“Personally wouldn’t be shorting it. There can be a lot of FOMO (fear of missing out) that leads into the AVAX summit and looks strong. Plus people that fade [Terra founder Do Kwon] more often than not end up losing.
Already see some negative funding into strength on some exchanges.”
As for Bitcoin, Pentoshi says macroeconomic uncertainties are still too significant to expect very much from BTC.
According to the analyst, the top crypto by market cap could rally near the $50,000 range as selling loses steam, before ultimately resuming a downtrend in the second quarter of this year.
“BTC Macro headwinds still too strong, but midterm I think we rally because of seller exhaustion before any shot at new lows or previous lows. So lean towards up then down, in my opinion, late Q2.”